ANOH Gas Processing Company (AGPC) – a joint venture between Seplat Petroleum Development and the Nigerian Gas Company – has raised $260 million in debt financing for the completion of its Assa North-Ohaji South (ANOH) gas project in Imo state.
The consortium of Nigerian and international lenders comprises Stanbic IBTC Bank, United Bank for Africa, Zenith Bank, FirstRand Bank (London Branch) / RMB Nigeria, Mauritius Commercial Bank, Union Bank of Nigeria and FCMB Capital Markets.
Construction is estimated at a cost of $650 million, with the remainder to be covered via $420-million combined equity funding from AGPC.
“Completing the funding of ANOH is an important milestone for AGPC. The ANOH development is one of the Government’s Seven Critical Gas Development Projects [7CGDP], and our involvement provides a clear path towards strengthening Seplat’s position as Nigeria’s leading indigenous diversified energy producer,” said Roger Brown, CEO of Seplat.
The ANOH gas-processing plant – which will process gas from the onshore OML 53 block in Niger Delta – will carry a capacity of 300 million cubic feet per day. The project was initially expected to be completed last year, following a final investment decision taken in December 2018.
According to Brown, Seplat plans to continue to increase the scope of its gas business, with a view to securing clean energy sourcesand driving Nigeria’s transition to less expensive and more sustainable power production.
“We are extremely proud to partner with the NGC in this strategically important project, which will create jobs and prosperity in the Nigerian economy,” he added.
According to Okechukwu Mba, Seplat’s Managing Director, the plant will have the capacity to power up to five million homes once operational and will serve as a significant contributor to Nigeria’s power supply.